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XRP/USD Price Analysis: Coin breaches support as bearish pressure continues

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XRP/USD Price Analysis: Coin breaches support as bearish pressure continues
Source: Pixabay

XRP broke its sideways movement after it breached its immediate support to fall lower. Despite a slew of announcements and XRP adoption, the price of XRP remains unaffected.

The price of XRP was $0.315, with the market cap at $12 billion, at press time. The 24-hour price change for XRP was -0.58%, while the 7-day price change was negative 2.69%.

1 Hour

Source: TradingView

The one-hour chart for XRP showed a dominant downtrend that extended from $0.3445 to $0.3171, while the uptrend ranged from $0.3072 to $0.3134. The price breached the support at $0.3160. Resistance points were seen at $0.3260 and $0.3489.

The Bollinger Bands were undergoing a squeeze, indicating that the volatility of XRP was drained out. The prices hung below the simple moving average, indicating the presence of bears.

The MACD indicator showed the signal and MACD line intertwined, indicating a tussle between the bulls and the bears.

The Awesome Oscillator showed small histograms of red and green over the zero-line.

1 Day

Source: TradingView

The one-day chart showed a dominant downtrend that was progressing since May 2018. It extended from $0.9027 to $0.3257. The support at $0.2587 was holding XRP from dipping further below. Long-term resistance points were $0.5836, $0.6880, and $0.9027.

The Aroon indicator showed a rising red-line, which indicated an increase in the strength of the downtrend.

The Chaikin Money Flow line was below zero, indicating that money was flowing out of the XRP market.

The Relative Strength Index showed a balance between the momentum of sellers and buyers.



Conclusion

The one-hour chart indicated bearish pressure for the coin after the sudden drop in prices on 21 March. The indicators, Bollinger Bands, MACD, and Awesome Oscillator confirmed the same. The one-day chart showed an increase in the hold of the bears on the XRP market, as indicated by Aroon, Chaikin Money Flow, and Relative Strength Index.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

Bitcoin

Bitcoin [BTC] surges above $5,500 and breaks major resistance level; collective market rises

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Bitcoin [BTC] surges above $5,500 breaking major resistance level; collective market surges
Source: Pixabay

Bitcoin [BTC] broke out of its sideways trend that saw coins fall after a brilliant start to April. This “break-out” is especially significant since it came days after the coin was trading sluggishly, pulling the market cap below $175 billion.

After breaking the $5,200 level on April 16, the coin held steady, showing no noticeable dips. However, it also began losing the momentum it had gained when it rose by 15 percent on April 2. Many saw the past week as Bitcoin losing steam, opining that a drop to as low as $4,000 would manifest. This pessimism coupled with the delisting dilemma saw the global market decline by 3.31 percent over the past weekend.

Given this backdrop, the present Bitcoin price incline was even more bullish for the collective market. Further, this was not just an effort to shrug off “sideways bears,” but instead, two key levels were broken in order to usher a collective market rise and sustain BTC bullishness.

Source: Trading View

RESISTANCE

The first, as indicated by eToro’s senior market analyst Mati Greenspan, was the resistance level of $5,350. When Bitcoin began to consolidate following the early April high, Greenspan stated that if the BTC price were to punch above the aforementioned level, it “would likely serve as confirmation that we’re pushing higher and will lead to further buying pressure.”

Greenspan stated that the $5,350 level acted as a major support level throughout 2018. Hence, it is incredibly important that Bitcoin surge above it in the next rise to consolidate buying pressure. Another important point to signal the coming of a bullish market was the 200-day moving average which Bitcoin has stayed above since the April 2 rally.

PSYCHOLOGY

The other significant level for the collective market is Bitcoin’s ascendance over $5,500, which it managed courtesy of this rally. Many, including Greenspan, pegged $5,000 as a key psychological level for the coin and hence, the rise above $5,500 less than three weeks after $5,000 was broken will bring back optimism to the BTC market.



Further, as was seen in the April 2 rise, the Bitcoin pump resulted in the king coin increasing its market dominance. At the close of March, Bitcoin was edging closer to losing the majority. However, the rally saw its share increase to 52.4 percent within a day. Following this recent 4.61 percent increase against the US Dollar, the king coin’s dominance increased to 53.2 percent.

Given the elasticity of the collective market to changes in Bitcoin’s price, the market was awash in green as Bitcoin broke the resistance and psychological levels. Amid this bullish charge, some coins stood out for their above-average gains, which included Bitcoin Cash [BCH], Cardano [ADA], EOS [EOS], Litecoin [LTC], and the exchange-ousted Bitcoin SV [BSV].





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